National Bank Financial upgraded Pembina Pipeline Corporation (NYSE:PBA) to Outperform from Sector Perform with a price target of C$56. The firm is optimistic about the gas and NGL infrastructure value chain, projecting an increase in output from the Western Canadian Sedimentary Basin by 8.5 bcf/d over the next decade.

Pembina Pipeline is strategically positioned as Canada’s primary third-party natural gas processor, with integrated operations in NGL extraction and ethane supply. The company’s sector-leading valuation potential offers an estimated unrisked upside of approximately C$7.50 per share.

Despite a 5% decline in shares since the start of 2025, Pembina Pipeline is currently trading at less than 11 times projected 2026 EV/EBITDA, representing a discount compared to industry peers trading at nearly 12 times.

Pembina Pipeline Corporation (NYSE:PBA) is a Canadian provider of energy transportation and midstream services. While PBA shows investment potential, some AI stocks may offer greater upside with less downside risk. Consider exploring undervalued AI stocks that stand to benefit from current economic trends.

For more financial insights, check out articles on the Dow 20 Stocks List and 10 Unstoppable Dividend Stocks to Buy Now. No disclosures mentioned in this article.

Read more at Yahoo Finance: National Bank Financial Upgrades Pembina Pipeline (PBA) to Outperform